Marathon Oil Closes Transaction for Sale of Norway Business

Source: www.gulfoilandgas.com 10/15/2014, Location: Europe

Marathon Oil Corporation has closed the transaction with Det norske oljeselskap ASA for the sale of Marathon Oil Norge AS for a total transaction value of $2.7 billion. After adjustment for debt, net working capital and interest on the net purchase price, Marathon Oil received proceeds of approximately $2.1 billion. The effective date of the transaction is Jan. 1, 2014.

"The sale of the Norway business was one of Marathon Oil's strategic priorities for 2014 and a continuation of our portfolio optimization strategy," said Lee M. Tillman, Marathon Oil's president and CEO. "The successful closing of this transaction simplifies and concentrates our portfolio, and further demonstrates our commitment to rigorous portfolio management. Importantly, organic reinvestment is our first priority for the proceeds, and we have the depth of resource and future drilling inventory to support it.

"This ability to execute on our strategy and deliver industry-leading results is the foundation for Marathon Oil becoming the premier independent exploration and production company," he emphasized.

The Norway sale includes the operated Alvheim floating production, storage and offloading (FPSO) vessel, 10 Company-operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea. Full-year 2013 net production in Norway averaged approximately 80,000 barrels of oil equivalent (BOE) per day.